Abuja:The Nigerian National Petroleum Company Limited (NNPC Ltd.) is maintaining its crude oil supply to the Dangote Refinery through a naira-for-crude arrangement, as disclosed by Mr. Bayo Ojulari, the Group Chief Executive Officer, during a press briefing on the company’s 2025 Audited Financial Statements following its Annual General Meeting.
According to News Agency of Nigeria, Mr. Ojulari stated that NNPC is providing a designated number of crude cargoes to the refinery in naira, with additional volumes delivered in dollars. This dual currency transaction is due to the company’s financial obligations, which are primarily in dollars, necessitating dollar payments to drilling and project contractors.
The company is committed to continuing the Federal Government-approved naira-for-crude deal while supplying extra crude in dollars. On the issue of crude theft and pipeline security, Ojulari highlighted that community-based surveillance and security agency interventions have significantly boosted pipeline availability, particularly on major export routes.
Pipeline availability has improved substantially from early 2024, when facilities operated at less than 10 percent of producers’ output. Some producers now report the ability to deliver almost all of their production to terminals, indicating enhanced reliability of major pipeline networks. The reconciliation factor between crude produced and volumes at terminals has improved to 90 percent, from a previous range of 10 to 20 percent.
Despite these advancements, challenges persist with smaller internal pipelines and well-heads in difficult terrains. NNPC is deploying technologies like fibre optics and advanced well-head cages to detect intruders and combat crude theft and pipeline breaches. While detection has improved, response speed requires further attention, especially for remote facilities. The company is focusing on enhancing smaller pipeline networks and well-heads across diverse terrains using additional technologies.